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9/14/2009

How to find stocks with momentum

If you are short term swing trader, you need to be in stocks with momentum. Easy way to find such stocks in Telechart is by running a six month and two month momentum scan to generate a list of stocks.

In Telechart set up following PCF:

Six Month momentum

C / AVGC126

Two month momentum

C / AVGC42

Volume 3 days

MINV3.1 > 1000

In easyscan set up 2 easyscans

Six month momentum

Common Stocks

Six month momentum PCF set to list Rank >97

Volume 3 days =true

Price per share>3

Two Month Momentum

Two month momentum PCF set to list Rank >97

Volume 3 days =true

Price per share>3

Now look at the stocks in these two lists. These are the stocks currently favored by the market. To find trades from this you can sort the scan output by Price Percent Change 5 days and look at stocks with less than 5% price change in last five days. Those stocks are having a small pullback in their strong trend.

Here is a example of a quick swing trade on BEXP using this kind of momentum approach:

Best site to learn to trade

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As a member you will learn the basics of swing trading, momentum investing, growth investing and risk management.

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Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because everyday they learn so much from the members site.If you are looking to develop your own trading strategy the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on members site. Every method, every scan, every nuance is detailed and all possible help is offered to design your own method.

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If you are serious about your trading and want to build an enduring edge theStockbee Member site might help you.